The Ministry of Defence is reviewing pension rules that could benefit hundreds
of soldiers and cost the Government millions after threats
of legal action from ex-servicemen.

An internal inquiry has been started at the MoD to investigate the issue of
pensions payments to soldiers with “split service”, and officials are
preparing to make “a recommendation to ministers as to how to resolve the
issue”, according to documents seen by The Times.

One warned that it would need Treasury permission to make “payment over what
is allowed under the current rules”.